In the world of data usage and network management, the term "95th percentile CDR" often crops up, especially when it comes to billing for bandwidth. While it may sound complex, this metric plays a crucial role in determining how you're billed for data usage. In this blog post, we'll break down the concept of the 95th percentile CDR to help you better understand this billing method.
What Is the 95th Percentile CDR?
CDR (Committed Data Rate): Before diving into the 95th percentile aspect, let's first understand CDR. CDR represents the agreed-upon, committed bandwidth that you've contracted with your service provider. It's essentially the minimum amount of bandwidth you're guaranteed to have available at all times.
95th Percentile: The "95th percentile" refers to the measure of your bandwidth usage over a specific period, usually a month. It's calculated by sampling your data usage at regular intervals (typically every 5 minutes) and then arranging these measurements in ascending order.
Billing Usage: Now, here's where the 95th percentile CDR comes into play for billing purposes. Instead of billing you based on your peak usage (which can fluctuate greatly), service providers often use the 95th percentile CDR to provide a more stable and predictable billing method.
How Does It Work?
Data Sampling: Your bandwidth usage is sampled at regular intervals throughout the billing period.
Sort and Discard: These measurements are sorted from lowest to highest. The top 5% of the highest usage points are then discarded. This step is crucial because it eliminates the impact of occasional spikes or bursts in usage.
Billing: Your usage is billed based on the remaining highest measurement, which represents the 95th percentile. This ensures that you pay for a consistent level of bandwidth, even if you occasionally experience spikes.
Benefits of 95th Percentile CDR:
1. Predictable Costs: With this billing method, you can predict your monthly bandwidth costs more accurately, as it's based on your typical usage rather than occasional peaks.
2. Fair Billing: It's a fair way to bill for bandwidth, as it accounts for typical usage patterns while disregarding short-lived spikes.
3. Encourages Efficiency: Knowing that your billing is based on sustained usage encourages efficient use of bandwidth resources.
Understanding the 95th percentile CDR is essential for businesses that rely on stable and predictable bandwidth billing. It's a fair and efficient way to ensure you get the bandwidth you need while avoiding excessive charges for occasional bursts. So, the next time you come across this billing method, you'll know that it's all about ensuring fair and consistent costs for your bandwidth usage.
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